Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'ssni | ' |
Entity Registrant Name | 'SILVER SPRING NETWORKS INC | ' |
Entity Central Index Key | '0001180079 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 48,392,014 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $64,786 | $82,596 |
Short-term investments | 60,535 | 63,256 |
Accounts receivable | 58,138 | 69,724 |
Inventory | 4,567 | 4,350 |
Deferred cost of revenue | 32,149 | 37,460 |
Prepaid expenses and other current assets | 7,872 | 4,758 |
Total current assets | 228,047 | 262,144 |
Property and equipment, net | 12,606 | 12,364 |
Deferred cost of revenue, non-current | 281,309 | 238,663 |
Deferred tax assets, non-current | 1,204 | 1,613 |
Other long-term assets | 11,121 | 1,567 |
Total assets | 534,287 | 516,351 |
Current liabilities: | ' | ' |
Accounts payable | 27,661 | 31,317 |
Accrued liabilities | 23,107 | 21,282 |
Deferred revenue | 91,360 | 111,293 |
Current portion of capital lease obligations | 1,563 | 1,615 |
Deferred tax liability | 1,176 | 1,176 |
Total current liabilities | 144,867 | 166,683 |
Deferred revenue, non-current | 483,746 | 413,360 |
Other liabilities | 17,376 | 14,426 |
Commitments and contingencies (Note 4) | ' | ' |
Stockholders' deficit: | ' | ' |
Common stock and additional paid-in capital, $0.001 par value, 1,000,000 shares authorized as of June 30, 2014 and December 31, 2013, respectively; 48,380 and 47,384 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 557,894 | 539,013 |
Accumulated other comprehensive income | 63 | 130 |
Accumulated deficit | -669,659 | -617,261 |
Total stockholders' deficit | -111,702 | -78,118 |
Total liabilities, convertible preferred stock and stockholders' deficit | $534,287 | $516,351 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 48,380,000 | 47,384,000 |
Common stock, shares outstanding | 48,380,000 | 47,384,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Product revenue | $24,751 | $47,996 | $52,978 | $89,716 |
Service revenue | 16,856 | 55,514 | 32,858 | 67,497 |
Total revenue, net | 41,607 | 103,510 | 85,836 | 157,213 |
Cost of revenue: | ' | ' | ' | ' |
Product cost of revenue | 13,414 | 39,565 | 31,329 | 65,308 |
Service cost of revenue | 14,781 | 15,695 | 29,651 | 33,521 |
Total cost of revenue | 28,195 | 55,260 | 60,980 | 98,829 |
Gross profit | 13,412 | 48,250 | 24,856 | 58,384 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 17,342 | 18,752 | 35,067 | 43,871 |
Sales and marketing | 8,854 | 8,637 | 18,077 | 19,090 |
General and administrative | 11,888 | 10,879 | 23,555 | 25,015 |
Total operating expenses | 38,084 | 38,268 | 76,699 | 87,976 |
Operating income (loss) | -24,672 | 9,982 | -51,843 | -29,592 |
Other income (expense), net: | ' | ' | ' | ' |
Interest income (expense), net | 85 | -184 | 48 | -1,236 |
Conversion of promissory notes and remeasurement of warrants and derivatives | ' | ' | ' | -23,676 |
Other income (expense), net | 85 | -184 | 48 | -24,912 |
Income (loss) before income taxes | -24,587 | 9,798 | -51,795 | -54,504 |
Provision for income taxes | 4 | 328 | 603 | 392 |
Net income (loss) | -24,591 | 9,470 | -52,398 | -54,896 |
Deemed dividend to convertible preferred stockholders | ' | ' | ' | -105,000 |
Net income (loss) attributable to common stockholders | ($24,591) | $9,470 | ($52,398) | ($159,896) |
Net income (loss) per share | ' | ' | ' | ' |
Basic | ($0.51) | $0.20 | ($1.09) | ($5.58) |
Diluted | ($0.51) | $0.19 | ($1.09) | ($5.58) |
Weighted average shares used to compute net income (loss) per share | ' | ' | ' | ' |
Basic | 48,315 | 46,600 | 48,006 | 28,637 |
Diluted | 48,315 | 48,997 | 48,006 | 28,637 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements of Comprehensive (Loss) [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($24,591) | $9,470 | ($52,398) | ($54,896) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in foreign currency adjustment | -20 | 60 | -12 | 107 |
Net unrealized holding gain (loss) on available for sale investments | 20 | ' | -55 | ' |
Other comprehensive income (loss) | ' | 60 | -67 | 107 |
Comprehensive income (loss) | ($24,591) | $9,530 | ($52,465) | ($54,789) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flow (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows used in operating activities: | ' | ' |
Net loss | ($52,398) | ($54,896) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 2,933 | 3,366 |
Stock-based compensation | 20,994 | 37,513 |
Conversion of promissory notes and remeasurement of warrants and derivatives | ' | 23,676 |
Other non-cash adjustments | 1,026 | 1,452 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 11,586 | -13,183 |
Inventory | -767 | -5,007 |
Prepaid expenses and other current assets | -3,279 | -3,187 |
Deferred cost of revenue | -37,335 | -23,073 |
Other long-term assets | -235 | 2,362 |
Accounts payable | -3,402 | 7,373 |
Accrued liabilities | 370 | -538 |
Customer deposits | 104 | -246 |
Deferred revenue | 50,103 | 2,666 |
Other liabilities | 3,645 | -1,239 |
Net cash used in operating activities | -6,655 | -22,961 |
Cash flows provided by (used in) investing activities: | ' | ' |
Payment for business acquisition, net of cash and cash equivalents acquired | -8,750 | ' |
Proceeds from sales and maturities of short-term investments | 42,058 | ' |
Payment on purchases of short-term investments | -39,501 | ' |
Acquisitions of property, plant and equipment | -3,698 | -2,462 |
Net cash used in investing activities | -9,891 | -2,462 |
Cash flows provided by (used in) financing activities: | ' | ' |
Payment upon termination of preferred stock warrants of a related party | ' | -12,000 |
Proceeds from initial public offering, net of offering costs | ' | 84,705 |
Proceeds from private placement of common stock with a related party | ' | 12,000 |
Payments on capital lease obligations | -748 | -944 |
Proceeds from issuance of common stock, net of repurchases | 4,747 | 190 |
Taxes paid related to net share settlement of equity awards | -5,263 | -6,204 |
Net cash (used in) provided by financing activities | -1,264 | 77,747 |
Net increase (decrease) in cash and cash equivalents | -17,810 | 52,324 |
Cash and cash equivalents-beginning of period | 82,596 | 72,646 |
Cash and cash equivalents-end of period | 64,786 | 124,970 |
Supplemental cash flow information-cash paid for taxes | 226 | 133 |
Supplemental cash flow information-cash paid for interest | 73 | 151 |
Non-cash investing and financing activities: | ' | ' |
Conversion of convertible preferred stock into common stock | ' | 270,725 |
Fair value of common stock issued on conversion of convertible promissory notes | ' | 79,441 |
Deferred offering costs not yet paid | ' | 474 |
Property and equipment acquired under capital lease | ' | $510 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Description of Business and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Description of Business and Summary of Significant Accounting Policies | ' | ||||||||
1. Description of Business and Summary of Significant Accounting Policies | |||||||||
We have over ten years of experience creating, building and successfully deploying large scale networks and solutions enabling the “internet of things” for critical infrastructure. The “internet of things” refers to a system where a diversity of physical devices has the capacity to communicate using internet technologies. Our first area of focus was in energy, creating a leading grid network by applying advanced networking technology and solutions to the power grid. We have recently broadened beyond the smart grid to networking other critical infrastructure such as street lights, enabling smarter and more efficient cities. | |||||||||
We provide a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. The foundation of our technology is a standards-based and secure Internet Protocol, or IP, network. Our networking platform provides two-way communications between the utility back office and devices on the power grid. In addition to our networking platform, we offer a suite of solutions that run on top of our network and complementary services. Our solutions include advanced metering, distribution automation and demand-side management. Our service offerings include professional services to implement our products, managed services and software as a service, or SaaS, to assist utilities with managing the network and solutions, and ongoing customer support. We have recently broadened beyond the smart grid to networking other critical infrastructure such as street lights, which enable smarter and more efficient cities. | |||||||||
We believe our technology is particularly well suited for a range of other solutions across the broad category of “internet of things.” We are focused on critical infrastructure that requires similar networking performance as the current market we serve. Our first expansion beyond the power grid has been to city infrastructure, specifically networking street lights. We believe that by applying advanced networking technology, we can enable cities to achieve their goals of increasing energy and operating efficiency while improving quality of life. We expect to expand our offerings in this area as the market opportunity evolves. | |||||||||
Silver Spring Networks, Inc., headquartered in Redwood City, California, was founded in July 2002 and was incorporated in the State of Delaware on July 3, 2002 as Real Time Techcomm, Inc. On August 6, 2002, we changed our name to Silver Spring Networks, Inc. | |||||||||
Reverse Stock Split | |||||||||
Prior to our initial public offering (“IPO”) in March 2013, our Board of Directors and holders of the requisite number of outstanding shares of our capital stock approved an amendment to our restated certificate of incorporation to effect a 5-for-1 reverse stock split of our outstanding capital stock. The reverse stock split was effected on February 11, 2013 and did not result in an adjustment to par value. The reverse stock split is reflected in the accompanying condensed consolidated financial statements and related notes on a retroactive basis for all periods presented. | |||||||||
Accounting Principles and Basis of Presentation | |||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||
The condensed consolidated balance sheet as of December 31, 2013, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. | |||||||||
The condensed consolidated financial statements include the accounts of Silver Spring Networks, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||
The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2014. | |||||||||
There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, and revenue and expenses during the reporting period. Estimates are used for revenue and cost recognition, inventory valuation, warranty obligations, stock-based compensation, classification of current and non-current deferred revenue and deferred cost of revenue, intangible assets, income taxes and deferred income tax assets and associated valuation allowances. These estimates generally involve complex issues and require judgments, involve the analysis of historical and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates. | |||||||||
Inventory | |||||||||
Inventory is stated at the lower of cost or market. Inventory consisted of the following (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Component parts | $ | 452 | $ | 690 | |||||
Finished goods | 4,115 | 3,660 | |||||||
Inventory | $ | 4,567 | $ | 4,350 | |||||
Finished goods inventory included consigned inventory which totaled $3.5 million and $2.8 million as of June 30, 2014 and December 31, 2013, respectively. | |||||||||
Product Warranty | |||||||||
We provide warranties for substantially all of our products. Our standard warranty period extends from one to five years. We accrue for costs of standard warranty at the time of product shipment and record changes in estimates to warranty accruals when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. | |||||||||
Product warranty obligation is presented as follows on the condensed consolidated balance sheets (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Current warranty obligation—classified in accrued liabilities | $ | 3,235 | $ | 2,985 | |||||
Non-current warranty obligation—classified in other liabilities | 3,446 | 3,104 | |||||||
$ | 6,681 | $ | 6,089 | ||||||
Product warranty activity was as follows (in thousands): | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Warranty obligation—beginning of period | $ | 6,089 | $ | 6,316 | |||||
Warranty expense for new warranties issued | 335 | 907 | |||||||
Utilization of warranty obligation | -1,470 | -1,110 | |||||||
Changes in estimates for pre-existing warranties | 1,727 | -118 | |||||||
Warranty obligation—end of period | $ | 6,681 | $ | 5,995 | |||||
During the six months ended June 30, 2014 and 2013, we revised our estimated warranty liability to reflect changes in cost estimates and, to a lesser extent, product field reliability experience and recorded an increase (reduction) of product warranty liability and product cost of revenue of $1.7 million and $(0.1) million, respectively. | |||||||||
At the time of product shipment, we estimate and accrue for the amount of standard warranty cost and record the amount as a cost of revenue. Determining the amount of warranty costs requires management to make estimates and judgments based on historical claims experience, industry benchmarks, test data and various other assumptions including estimated field failure rates that are believed to be reasonable under the circumstances. The amount of warranty costs accrued are net of warranty obligations to be fulfilled by our suppliers. The results of these judgments formed the basis for our estimate of the total charge to cover anticipated customer warranty, repair, return and replacement and other associated costs. Should actual product failure rates, claim levels, material usage or supplier warranties on parts used in our products differ from our original estimates, revisions to the estimated warranty liability could result in adjustments to our cost of revenue in future periods. | |||||||||
Certain of our standard product warranty obligations require us to reimburse a customer for installation and other related costs in the event that field reliability rates fall below contractually specified thresholds. We consider the probability that we will have to pay such incremental warranty costs based on the expected performance of a delivered product when we record new warranty obligations issued in a period as well as when we determine if any changes are required to our original estimates for pre-existing warranty obligations. | |||||||||
Our warranty obligations are affected by product failure rates, claims levels, material usage and supplier warranties on parts included in our products. Because our products are relatively new and we do not have the benefit of long-term experience observing the products’ performance in the field, it is possible that the estimates of a product’s lifespan and incidence of claims could vary from period to period. | |||||||||
In certain customer arrangements, we have provided extended warranties for periods of up to 15 years following the initial standard warranty period. We recognize revenue associated with extended warranties over the extended warranty period when the extended warranty period commences. Costs associated with providing extended warranties are expensed as incurred during the extended warranty period. As of June 30, 2014 and December 31, 2013, we had deferred revenue associated with extended warranty arrangements of $0.5 million and $0.2 million, respectively, included in other current liabilities, and $7.4 million and $7.1 million, respectively, included in other long-term liabilities on our condensed consolidated balance sheets. | |||||||||
Conversion of Convertible Promissory Notes and Embedded Derivatives | |||||||||
In connection with our IPO in March 2013, the conversion of the convertible notes and issuance of common stock were accounted for as debt extinguishments and accordingly, the convertible notes, unamortized debt issuance costs and bifurcated compound embedded derivatives were removed at their respective carrying amounts and the shares of common stock issued were measured at fair value based on the closing price on the date our IPO closed. As a result, we recorded a loss on debt extinguishments of $22.9 million in the three months ended March 31, 2013. | |||||||||
Accumulated Other Comprehensive Income (AOCI) | |||||||||
The components of AOCI, net of tax, were as follows (in thousands): | |||||||||
Foreign Currency | Unrealized Gains | ||||||||
Translation | (Losses) on Available | ||||||||
Adjustment | for Sale Securities | Total | |||||||
Balance as of December 31, 2013 | $ | 46 | $ | 84 | $ | 130 | |||
Other comprehensive income (loss) before reclassification | -12 | 56 | 44 | ||||||
Amounts reclassified from AOCI | — | -111 | -111 | ||||||
Other comprehensive loss | -12 | -55 | -67 | ||||||
Balance as of June 30, 2014 | $ | 34 | $ | 29 | $ | 63 | |||
Other Long-Term Assets | |||||||||
Other long-term assets consisted of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Acquired intangible assets, net | $ | 4,364 | $ | 224 | |||||
Goodwill | 5,131 | 447 | |||||||
Prepaid expenses, deposits, and receivables, non-current | 1,626 | 896 | |||||||
Other long-term assets | $ | 11,121 | $ | 1,567 | |||||
Recent Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board issued guidance related to revenue from contracts with customers, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the full retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for us in the first quarter of 2017. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. | |||||||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Net Income (Loss) Per Share [Abstract] | ' | |||||||||||
Net Income (Loss) Per Share | ' | |||||||||||
2. Net income (loss) per share | ||||||||||||
In connection with our IPO, all of our outstanding convertible preferred stock converted into common stock. In addition, we recognized a deemed dividend of $105.0 million to common stockholders on the date of conversion. Basic net loss per share applicable to common stockholders is computed by dividing the net loss applicable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share applicable to common stockholders is computed by giving effect to all potential shares of common stock, including stock options and restricted stock units, to the extent dilutive. | ||||||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share applicable to common stockholders (in thousands, except per share data): | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net income (loss) | $ | -24,591 | $ | 9,470 | $ | -52,398 | $ | -54,896 | ||||
Deemed dividend to convertible preferred stockholders | — | — | — | -105,000 | ||||||||
Net income (loss) available to common stockholders | $ | -24,591 | $ | 9,470 | $ | -52,398 | $ | -159,896 | ||||
Weighted average common shares outstanding—basic | 48,315 | 46,600 | 48,006 | 28,637 | ||||||||
Dilutive effect of employee equity incentive plans | — | 2,342 | — | — | ||||||||
Dilutive effect of warrants to purchase common stock | — | 55 | — | — | ||||||||
Weighted average common shares outstanding—diluted | 48,315 | 48,997 | 48,006 | 28,637 | ||||||||
Basic earnings (loss) per common share | $ | -0.51 | $ | 0.20 | $ | -1.09 | $ | -5.58 | ||||
Diluted earnings (loss) per common share | $ | -0.51 | $ | 0.19 | $ | -1.09 | $ | -5.58 | ||||
The following potential common shares outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands): | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Employee equity incentive plans | 7,808 | 2,636 | 7,808 | 6,565 | ||||||||
Warrants to purchase common stock | — | 1 | — | 55 | ||||||||
Total common stock equivalents | 7,808 | 2,637 | 7,808 | 6,620 | ||||||||
Financial_Instruments
Financial Instruments | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Financial Instruments | ' | |||||||||||
3. Financial Instruments | ||||||||||||
Cash, Cash Equivalents and Short-Term Investments | ||||||||||||
Cash equivalents consist of highly liquid investments with insignificant interest rate risk and original or remaining maturities at the time of purchase of three months or less, and consist primarily of money market funds and U.S. Government securities. Short-term investments consist of high investment grade securities with original or remaining maturities at the time of purchase of greater than three months, and are available for use in current operations. We classify all of our cash equivalents and short-term investments as available-for-sale and record at fair value. Unrealized gains and losses are included in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ deficit. Realized gains and losses are included in other income and expense, net. Determining whether a decline in fair value is other-than-temporary requires management judgment based on the specific facts and circumstances of each security. We evaluate our short-term investments for impairment each reporting period. Amounts are reclassified out of accumulated other comprehensive income (loss) into earnings using the specific identification method. | ||||||||||||
Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||
As of June 30, 2014 | ||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Current assets: | ||||||||||||
Cash | $ | 49,204 | $ | — | $ | — | $ | 49,204 | ||||
Cash equivalents: | ||||||||||||
Money market mutual funds | 15,582 | — | — | 15,582 | ||||||||
Total cash equivalents | 15,582 | — | — | 15,582 | ||||||||
Short-term fixed income securities: | ||||||||||||
U.S. government and agency obligations | 39,023 | 79 | -7 | 39,095 | ||||||||
U.S. and foreign corporate debt securities | 19,413 | 41 | -12 | 19,442 | ||||||||
Foreign governments and multi-national agency obligations | 2,001 | — | -3 | 1,998 | ||||||||
Total short-term investments | 60,437 | 120 | -22 | 60,535 | ||||||||
Total cash, cash equivalents and short-term investments | $ | 125,223 | $ | 120 | $ | -22 | $ | 125,321 | ||||
As of December 31, 2013 | ||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Current assets: | ||||||||||||
Cash | $ | 52,346 | $ | — | $ | — | $ | 52,346 | ||||
Cash equivalents: | ||||||||||||
Money market mutual funds | 30,250 | — | — | 30,250 | ||||||||
Total cash equivalents | 30,250 | — | — | 30,250 | ||||||||
Short-term fixed income securities: | ||||||||||||
U.S. government and agency obligations | 41,991 | 84 | -21 | 42,054 | ||||||||
U.S. and foreign corporate debt securities | 18,366 | 76 | -1 | 18,441 | ||||||||
Foreign governments and multi-national agency obligations | 2,764 | — | -3 | 2,761 | ||||||||
Total short-term investments | 63,121 | 160 | -25 | 63,256 | ||||||||
Total cash, cash equivalents and short-term investments | $ | 145,717 | $ | 160 | $ | -25 | $ | 145,852 | ||||
As of June 30, 2014, approximately 43%, 40%, and 12% of our cash, cash equivalents, and short-term investments were held with three separate financial institutions. As of December 31, 2013, approximately 41%, 34%, and 21% of our cash, cash equivalents, and short-term investments were held with three separate financial institutions. | ||||||||||||
Contractual Maturities | ||||||||||||
The contractual maturities of cash equivalents and short-term investments consisted of the following (in thousands): | ||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||
Amortized | Aggregate | Amortized | Aggregate | |||||||||
Cost Basis | Fair Value | Cost Basis | Fair Value | |||||||||
Due within one year | $ | 32,882 | $ | 32,903 | $ | 44,477 | $ | 44,474 | ||||
Due after 1 year through 3 years | 43,135 | 43,214 | 48,894 | 49,032 | ||||||||
Total cash equivalents & short-term investments | $ | 76,017 | $ | 76,117 | $ | 93,371 | $ | 93,506 | ||||
Fair Value Measurements | ||||||||||||
We measure certain financial assets at fair value on a recurring basis. | ||||||||||||
The measurements of fair value were established based on a fair value hierarchy that prioritizes the inputs. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. The guidance for fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories: | ||||||||||||
Level 1—Quoted (unadjusted) prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | ||||||||||||
Level 3—Unobservable inputs in which there is little or no market data, which requires us to develop our own assumptions. | ||||||||||||
Level 1 measurements are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 measurements are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. We did not have any transfers of financial instruments between valuation levels during the six months ended June 30, 2014 and the year ended December 31, 2013. | ||||||||||||
As of June 30, 2014, the fair value of these financial assets measured at fair value on a recurring basis was determined using the following inputs (in thousands): | ||||||||||||
Fair Value Measurement Using | ||||||||||||
Quoted Prices in | ||||||||||||
Active Markets | Significant Other | Significant | ||||||||||
for Identical | Observable | Unobservable | ||||||||||
Instruments | Inputs | Inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||
Cash equivalents: | ||||||||||||
Money-market funds | $ | 15,582 | $ | — | $ | — | $ | 15,582 | ||||
Total cash equivalents | 15,582 | — | — | 15,582 | ||||||||
Short-term investments: | ||||||||||||
U.S. Government and agency obligations | — | 39,095 | — | 39,095 | ||||||||
U.S. and foreign corporate debt securities | — | 19,442 | — | 19,442 | ||||||||
Foreign governments and multi-national agency obligations | — | 1,998 | — | 1,998 | ||||||||
Total short-term investments | — | 60,535 | — | 60,535 | ||||||||
Total assets measured at fair value | $ | 15,582 | $ | 60,535 | $ | — | $ | 76,117 | ||||
As of December 31, 2013, the fair value of these financial assets recorded at fair value on a recurring basis was determined using the following inputs (in thousands): | ||||||||||||
Fair Value Measurement Using | ||||||||||||
Quoted Prices in | ||||||||||||
Active Markets | Significant Other | Significant | ||||||||||
for Identical | Observable | Unobservable | ||||||||||
Instruments | Inputs | Inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||
Cash equivalents: | ||||||||||||
Money-market funds | $ | 30,250 | $ | — | $ | — | $ | 30,250 | ||||
Total cash equivalents | 30,250 | — | — | 30,250 | ||||||||
Short-term investments: | ||||||||||||
U.S. Government and agency obligations | — | 42,054 | — | 42,054 | ||||||||
U.S. and foreign corporate debt securities | — | 18,441 | — | 18,441 | ||||||||
Foreign governments and multi-national agency obligations | — | 2,761 | — | 2,761 | ||||||||
Total short-term investments | — | 63,256 | — | 63,256 | ||||||||
Total assets measured at fair value | $ | 30,250 | $ | 63,256 | $ | — | $ | 93,506 | ||||
We periodically review our marketable debt securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and our intent to sell. We also consider whether it is more likely than not that we will be required to (i) sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. During the six months ended June 30, 2014, we did not recognize any other-than-temporary impairment loss. The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands): | ||||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||
Total (Less Than 12 Months) | Total (Less Than 12 Months) | |||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||
Value | Loss | Value | Loss | |||||||||
U.S. and foreign corporate debt securities | $ | 12,911 | $ | -12 | $ | 4,247 | $ | -1 | ||||
Foreign governments and multi-national agency obligations | 4,072 | -3 | 2,761 | -3 | ||||||||
U.S. government and agency obligations | 1,998 | -7 | 12,566 | -21 | ||||||||
Total | $ | 18,981 | $ | -22 | $ | 19,574 | $ | -25 | ||||
There were no investments with unrealized losses for a period in excess of 12 months. | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Commitments and Contingencies [Abstract] | ' | |||||
Commitments and Contingencies | ' | |||||
4. Commitments and contingencies | ||||||
Operating and Capital Leases | ||||||
The future minimum commitments under our operating and capital leases were as follows (in thousands): | ||||||
30-Jun-14 | ||||||
Operating Leases | Capital Leases | |||||
2014 | $ | 2,658 | $ | 860 | ||
2015 | 5,408 | 1,162 | ||||
2016 | 4,198 | 112 | ||||
2017 | 455 | — | ||||
2018 | 466 | — | ||||
2019 and thereafter | 1,290 | — | ||||
Net minimum lease payments | $ | 14,475 | 2,134 | |||
Less amount representing interest | -107 | |||||
Present value of net minimum capital lease payments | $ | 2,027 | ||||
Legal Contingencies | ||||||
We were named in a lawsuit filed in September 2010 in the Superior Court of the State of California, San Mateo County (Edwards v. Silver Spring Networks). The lawsuit claims to be a “class action” on behalf of California consumers, and alleges that smart meters are defective and generate incorrect bills. We filed a motion to dismiss this case and, in September 2011, the San Mateo Superior Court granted our motion without leave to amend as to two of the plaintiffs’ causes of action and with leave to amend as to a third claim. In February 2012, the plaintiffs filed an amended complaint, to which we filed an answer denying the plaintiffs’ allegations in May 2012. In August 2012, the plaintiffs filed a second amended complaint, and in September 2012, we filed a demurrer to one of the two claims asserted in the second amended complaint, which was overruled by the court. In November 2012, the plaintiffs filed a motion for class certification. In April 2013, the court denied the class certification motion without prejudice, but allowed the plaintiffs to file a revised class certification motion, which the plaintiffs filed in June 2013. The court denied the revised class certification motion in December 2013. In June 2014, we entered into a general release and individual settlement agreement with the plaintiffs to dismiss the lawsuit against us. Under the terms of the settlement agreement, we agreed to pay an immaterial one-time settlement payment in exchange for the dismissal with prejudice of the pending claims against us and a general release of claims. | ||||||
In June 2011, EON Corp. IP Holdings, LLC, a non-producing entity, or EON, filed suit in United States District Court for the Eastern District of Texas, Tyler Division against us and a number of smart grid providers. Other defendants include Landis+Gyr AG (acquired by Toshiba Corporation), Aclara Power-Line Systems Inc., Elster Solutions, LLC, Itron, Inc. and Trilliant Networks Inc. This lawsuit alleges infringement of United States Patent Nos. 5,388,101, 5,481,546, and 5,592,491 (the “EON Patents”) by certain networking technology and services that we and the other defendants provide. We filed amended answers, affirmative defenses and counterclaims in August 2012, September 2012, October 2012 and November 2012 denying the plaintiff’s allegations and asserting that plaintiff’s patents are invalid. All of the other named defendants in the case settled with EON prior to trial, which was held in June 2014. Following the trial, the jury determined that we had infringed certain, but not all, of the claims under the EON Patents, and returned a verdict against us in the amount of $18.8 million. However, the jury also determined that there was insufficient evidence to support EON’s allegation of willful infringement and granted our motion to dismiss that claim. In June 2014, we filed post-trial motions with the District Court seeking, among other things, a judgment as a matter of law to set aside the jury verdict, or in the alternative a new trial. EON disclosed in its post-trial motions that it is seeking pre-judgment interest and attorneys’ fees. We expect post-trial motions to be heard later this year, however the judge has not yet set a date for deciding these motions. All of the EON Patents are expired and therefore EON is not seeking, and there is no possibility that EON may recover, any additional sums as royalties for our sales of products going forward. We believe that the evidence and the law do not support the jury’s findings of infringement, validity, and the award of damages. Moreover, we believe that we have meritorious defenses to EON’s allegations and legitimate grounds for appeal and intend to continue vigorously defending against the action, including exercising all options available to us through the appeals process if necessary. Consequently, as of June 30, 2014, we had not accrued any liability in our financial statements for this lawsuit as we do not believe a loss is probable. Due to the inherent uncertainty in predicting the ultimate outcome of the post-trial motions and the appeals process, we believe it is reasonably possible that this legal proceeding could result in a material loss that ranges from $0 to $18.8 million. In continuing to assess the impact of this jury verdict on our financial statements, we will continue to evaluate the status and outcome of post-trial motions and the likelihood of a successful appeal. | ||||||
In September 2011, TransData, Inc., or TransData, filed suit in United States District Court for the Western District of Oklahoma, against Oklahoma Gas & Electric Company (“OG&E”), alleging infringement of United States Patent Nos. 6,181,294, 6,462,713, and 6,903,699 by certain wireless communication-enabled meters, including General Electric Company meters with our wireless modules. We have agreed with General Electric Company to contribute to the indemnification and defense of OG&E in connection with the TransData suit. An early claim construction hearing was held regarding one claim term in February 2013, which the court ruled upon in June 2013. A hearing for the full claim construction was held in September 2013, on which the court issued an order in October 2013. We believe that OG&E has meritorious defenses to TransData’s allegations, and, together with OG&E and General Electric Company, intend to vigorously defend against the action. | ||||||
In March 2013, Linex Technologies, Inc., a non-producing entity, or Linex, filed suit against us in United States District Court for the Southern District of Florida. The complaint alleges that certain of our networking technology infringes United States Patent Nos. 6,493,377 and 7,167,503. We filed an answer in May 2013. In January 2014, the court granted the plaintiff’s request for a stay of the matter, pending reexamination of the patents at issue by the U.S. Patent and Trademark Office. We believe that we have meritorious defenses to Linex’s allegations and intend to continue vigorously defending against the action. | ||||||
During the year ended December 31, 2013, the Company recorded an immaterial charge related to certain legal proceedings described above. Other than for the matters that the Company has recognized in the consolidated financial statements, it has not recorded any amounts for contingent losses associated with the matters described above based on its belief that losses, while reasonably possible, are not probable. Unless otherwise stated, the Company is currently unable to predict the final outcome of these lawsuits and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. | ||||||
We are directly involved with various unresolved legal actions and claims, and are indirectly involved with proceedings by administrative bodies such as public utility commissions, arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such legal actions and claims, individually or in the aggregate, would have a material effect on our consolidated financial statements. There are many uncertainties associated with any litigation or claim, and we cannot be certain that these actions or other third-party claims will be resolved without costly litigation, fines and/or substantial settlement payments. If that occurs, our business, financial condition and results of operations could be materially and adversely affected. If information becomes available that causes us to determine that a loss in any of our pending litigation matters, claims or settlements is probable, and a reasonable estimate of the loss associated with such events can be made, we will record the estimated loss at that time. | ||||||
Customer Performance and Other Commitments | ||||||
Certain customer agreements require us to obtain letters of credit or surety bonds in support of our obligations under such arrangements. These letters of credit or surety bonds typically provide a guarantee to the customer for future performance, which usually covers the deployment phase of a contract and may on occasion cover the operations and maintenance phase of service contracts. We have available a line of credit with a bank, which provides for advances and the issuance of letters of credit of up to $50 million. | ||||||
During the ordinary course of business, we provide standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated either by us or ourselves. These letters of credit or guarantee instruments are related to performance guarantees, facility leases and workers compensation insurance. These letters of credit are subject to compliance with financial covenants and other customary conditions to borrowings. As of June 30, 2014, we were in compliance with the financial covenants in the credit agreement. As of June 30, 2014 and December 31, 2013, we had a total of $6.0 million and $9.8 million, respectively, of standby letters of credit issued under the credit facility with a financial institution, of which $0.6 million (A$0.6 million) and $0.6 million (A$0.6 million), respectively, were denominated in Australian dollars. | ||||||
As of June 30, 2014, we had a $15.0 million unsecured surety bond. The surety bond provides a financial guarantee to support performance obligations under certain customer agreements. In the event any such letters of credit or surety bonds are called, we would be obligated to reimburse the issuer of the letter of credit or surety bond. We do not believe there will be any claims against currently outstanding letters of credit or surety bonds. | ||||||
Our contracts with customers and meter manufacturers typically contain provisions that could result in payments or other liabilities related to late or improper delivery of products, services, installations or operations or failure to meet product or performance specifications or other product defects. Any payments made to customers pursuant to the terms of these provisions are recorded as reductions of deferred revenue. | ||||||
Indemnification Commitments | ||||||
Directors, Officers and Employees. In accordance with our bylaws and/or pursuant to indemnification agreements we have entered into with directors, officers and certain employees, we have indemnification obligations to our directors, officers and certain employees for claims brought against these persons arising out of certain events or occurrences while they are serving at our request in such a capacity. We maintain director and officer liability insurance coverage to reduce our exposure to such obligations, and payments made under indemnification agreements. To date, there have been no indemnification claims by these directors, officers and employees. | ||||||
Customers and Meter Manufacturers. Our contracts with customers and meter manufacturers typically provide indemnification for claims filed by third parties alleging that our products and services sold to the customer or manufacturer infringe or misappropriate any patent, copyright, trademark or other intellectual property right. Refer to the discussion above under the heading “Legal Contingencies” for a description of certain matters involving our indemnification obligations. | ||||||
In our customer contracts, we also typically provide an indemnification for third-party claims resulting from death, personal injury or property damage caused by the negligence or willful misconduct of our employees and agents in connection with the performance of certain contracts. | ||||||
Under our customer and meter manufacturer indemnities, we typically agree to defend the customer or meter manufacturer, as the case may be, from such claims, and pay any resulting costs, damages and attorneys’ fees awarded against the indemnified party with respect to such claims, provided that (a) the indemnified party promptly notifies us in writing of the claim, (b) the indemnified party provides reasonable assistance to us at our expense, and (c) we have sole control of the defense and all related settlement negotiations. | ||||||
Insurance. We maintain various insurance coverage policies, subject to policy limits and certain conditions that enable us to recover a portion of amounts paid by us in connection with our obligation to indemnify our customers and meter manufacturers. However, because our maximum liability associated with such indemnification obligations generally is not stated explicitly in the related agreements, and further because many states prohibit limitations of liability for such indemnified claims, the maximum potential amount of future payments we could be required to make under these indemnification provisions could significantly exceed insurance policy limits. | ||||||
Historically, payments made by us under these indemnification provisions have not had a material effect on our results of operations, financial position or cash flows. | ||||||
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||
Stock-Based Compensation | ' | |||||||||||
5. Stock-Based Compensation | ||||||||||||
Equity Incentive Plan and Employee Stock Purchase Plan | ||||||||||||
Our Board of Directors adopted the 2012 Equity Incentive Plan, or the 2012 Plan, which became effective on March 12, 2013 and serves as the successor to our 2003 Stock Option Plan, or the 2003 Plan. Pursuant to the 2012 Plan, 3,400,000 shares of our common stock were initially reserved for grant, plus (1) any shares that were reserved and available for issuance under the 2003 Plan at the time the 2012 Plan became effective, and (2) any shares that become available upon forfeiture or repurchase by us under the 2003 Plan and a stock option plan assumed in connection with a previous acquisition, will be reserved for issuance. Under the 2012 Plan, we may grant both incentive and non-statutory stock options, restricted stock and restricted stock units to employees, directors and service providers. We may grant options to purchase shares of common stock to employees, directors and service providers at prices not less than the fair market value at date of grant for both Incentive Stock Options, or ISOs, or Nonqualified Stock Options, or NQSOs. ISOs granted to a person who, at the time of the grant, owns more than 10% of the voting power of all classes of stock must be at no less than 110% of the fair market value and expire five years from the date of grant. All other options generally have a contractual term of 10 years. Options generally vest over four years. Restricted stock units, or RSUs, generally vest between two to four years. We have also granted to certain executive officers awards with performance and service-based conditions. The potential shares to be awarded related to performance-based awards are derived from fiscal 2014 operating performance metrics which will be determined at the end of the year. As of June 30, 2014 and December 31, 2013, there were 3.3 million and 2.5 million shares, respectively, of common stock reserved for future issuance under our stock plan. | ||||||||||||
Our Board of Directors adopted the 2012 Employee Stock Purchase Plan, or ESPP, which became effective on March 12, 2013, pursuant to which 400,000 shares of our common stock have been reserved for future issuance. Eligible employees can enroll and elect to contribute up to 15% of their compensation through payroll withholdings in each offering period, subject to certain limitations. Each offering period is six months in duration, with the exception of the initial offering period, which commenced in March 2013 upon the date our IPO was declared effective and that ended on February 14, 2014. The purchase price of the stock is the lower of 85% of the fair market value on (a) the first day of the offering period or (b) the purchase date. | ||||||||||||
We recorded stock-based compensation expense as follows (in thousands): | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Cost of revenue | $ | 1,930 | $ | 2,531 | $ | 4,622 | $ | 9,255 | ||||
Research and development | 2,694 | 3,607 | 5,850 | 13,151 | ||||||||
Sales and marketing | 1,754 | 1,526 | 3,799 | 4,872 | ||||||||
General and administrative | 3,184 | 3,181 | 6,723 | 10,235 | ||||||||
Stock-based compensation expense | $ | 9,562 | $ | 10,845 | $ | 20,994 | $ | 37,513 | ||||
The following table summarizes our stock option activity and related information for the six months ended June 30, 2014 (in thousands, except per share data): | ||||||||||||
Options Outstanding | ||||||||||||
Weighted | Weighted | |||||||||||
Average | Average | |||||||||||
Exercise | Remaining | Aggregate | ||||||||||
Number of | Price per | Contractual | Intrinsic | |||||||||
Shares | Share | Term (years) | Value | |||||||||
Balance at December 31, 2013 | 4,726 | $ | 11.88 | |||||||||
Options granted | 695 | 14.88 | ||||||||||
Options exercised | -166 | 3.93 | ||||||||||
Options cancelled or expired | -80 | 18.39 | ||||||||||
Balance at June 30, 2014 | 5,175 | $ | 12.44 | 6.20 | $ | 18,096 | ||||||
As of June 30, 2014: | ||||||||||||
Options vested and expected to vest | 5,069 | $ | 12.34 | 6.12 | $ | 18,090 | ||||||
Options exercisable | 3,577 | $ | 10.51 | 4.96 | $ | 18,064 | ||||||
The following table summarizes our restricted stock unit activity and related information for the three months ended June 30, 2014 (in thousands, except per share data): | ||||||||||||
Restricted Stock | ||||||||||||
Units Outstanding | ||||||||||||
Weighted | ||||||||||||
Average Grant | ||||||||||||
Number of | Date Fair Value | |||||||||||
Shares | per Share | |||||||||||
Balance at December 31, 2013 | 2,759 | $ | 19.14 | |||||||||
Restricted stock units granted | 785 | 13.42 | ||||||||||
Restricted stock units vested | -871 | 17.36 | ||||||||||
Restricted stock units cancelled | -158 | 18.46 | ||||||||||
Balance at June 30, 2014 | 2,515 | $ | 17.65 | |||||||||
In March 2013, as approved by our Board of Directors, we modified certain stock options held by employees and directors to purchase 1,752,895 shares of our common stock with an exercise price of $34.90 per share or greater to reduce the exercise price to $17.00 per share, the IPO price. There were no changes to vesting terms or conditions. As a result of the modification to these stock options, we incurred an incremental charge to stock-based compensation of $0.6 million and $4.1 million for the six months ended June 30, 2014 and 2013, respectively, and expect to incur $0.7 million of incremental stock-based compensation over a weighted average period of 0.8 years. | ||||||||||||
As of June 30, 2014, there was $31.5 million and $13.9 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements related to options and RSUs, respectively, which are expected to be recognized over a weighted-average period of 3.1 and 2.1 years, respectively. | ||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
6. Income Taxes | |
Our provision for income taxes for the three months ended June 30, 2014 and 2013 reflects an effective tax rate of (0.0)% and 3.3%, respectively. Our provision for income taxes for the three months ended June 30, 2014 consists primarily of withholding taxes, offset by a tax benefit related to foreign losses, while our provision for income taxes for the three months ended June 30, 2013 consisted primarily of foreign income and withholding taxes. Our provision for income taxes for the six months ended June 30, 2014 and 2013 reflects an effective tax rate of (1.2)% and (0.7)%, respectively, and consists primarily of foreign income and withholding taxes. | |
Business_Acquisition
Business Acquisition | 6 Months Ended |
Jun. 30, 2014 | |
Business Acquisition [Abstract] | ' |
Business Acquisition | ' |
7. Business Acquisition | |
On May 6, 2014, we entered into a purchase agreement to acquire 100% of the outstanding shares of Streetlight.Vision (“SLV”), a company incorporated under the laws of France, which provides street light control and management software. On May 23, 2014, we completed the acquisition of SLV, a société par actions simplifiée, and paid approximately $8.8 million in cash, of which $2.6 million was deposited in an escrow account to satisfy indemnification claims that we may have for a period 24 months pursuant to the terms of the purchase agreement. If there remains more than $1.3 million in the escrow account 12 months after the completion of the acquisition after taking into account any pending indemnification claims, such amount over $1.3 million shall be paid to the SLV shareholders. The remaining $1.3 million shall be paid to the SLV shareholders after the conclusion of the 24-month period, subject to any pending indemnification claims. | |
In accordance with ASC 805, Business Combinations, the acquisition of SLV was recorded as a purchase business acquisition since SLV was considered a business. Under the purchase method of accounting, the fair value of the consideration was allocated to net assets acquired at their fair values. The results of operations of SLV, which are not material as of the six months ended June 30, 2014, are included in our consolidated financial results. | |
The $8.8 million total consideration was preliminarily allocated primarily to $4.7 million, $4.3 million, and $0.5 million of goodwill, intangible assets, and net deferred tax liabilities, respectively. | |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Financial Instruments [Abstract] | ' | ||||||||
Reverse Stock Split | ' | ||||||||
Reverse Stock Split | |||||||||
Prior to our initial public offering (“IPO”) in March 2013, our Board of Directors and holders of the requisite number of outstanding shares of our capital stock approved an amendment to our restated certificate of incorporation to effect a 5-for-1 reverse stock split of our outstanding capital stock. The reverse stock split was effected on February 11, 2013 and did not result in an adjustment to par value. The reverse stock split is reflected in the accompanying condensed consolidated financial statements and related notes on a retroactive basis for all periods presented. | |||||||||
Accounting Principles and Basis of Presentation | ' | ||||||||
Accounting Principles and Basis of Presentation | |||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||
The condensed consolidated balance sheet as of December 31, 2013, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. | |||||||||
The condensed consolidated financial statements include the accounts of Silver Spring Networks, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||
The accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2014. | |||||||||
There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities, and revenue and expenses during the reporting period. Estimates are used for revenue and cost recognition, inventory valuation, warranty obligations, stock-based compensation, classification of current and non-current deferred revenue and deferred cost of revenue, intangible assets, income taxes and deferred income tax assets and associated valuation allowances. These estimates generally involve complex issues and require judgments, involve the analysis of historical and prediction of future trends, can require extended periods of time to resolve and are subject to change from period to period. Actual results may differ materially from management’s estimates. | |||||||||
Inventory | ' | ||||||||
Inventory | |||||||||
Inventory is stated at the lower of cost or market. Inventory consisted of the following (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Component parts | $ | 452 | $ | 690 | |||||
Finished goods | 4,115 | 3,660 | |||||||
Inventory | $ | 4,567 | $ | 4,350 | |||||
Finished goods inventory included consigned inventory which totaled $3.5 million and $2.8 million as of June 30, 2014 and December 31, 2013, respectively. | |||||||||
Product Warranty | ' | ||||||||
Product Warranty | |||||||||
We provide warranties for substantially all of our products. Our standard warranty period extends from one to five years. We accrue for costs of standard warranty at the time of product shipment and record changes in estimates to warranty accruals when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. | |||||||||
Product warranty obligation is presented as follows on the condensed consolidated balance sheets (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Current warranty obligation—classified in accrued liabilities | $ | 3,235 | $ | 2,985 | |||||
Non-current warranty obligation—classified in other liabilities | 3,446 | 3,104 | |||||||
$ | 6,681 | $ | 6,089 | ||||||
Product warranty activity was as follows (in thousands): | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Warranty obligation—beginning of period | $ | 6,089 | $ | 6,316 | |||||
Warranty expense for new warranties issued | 335 | 907 | |||||||
Utilization of warranty obligation | -1,470 | -1,110 | |||||||
Changes in estimates for pre-existing warranties | 1,727 | -118 | |||||||
Warranty obligation—end of period | $ | 6,681 | $ | 5,995 | |||||
During the six months ended June 30, 2014 and 2013, we revised our estimated warranty liability to reflect changes in cost estimates and, to a lesser extent, product field reliability experience and recorded an increase (reduction) of product warranty liability and product cost of revenue of $1.7 million and $(0.1) million, respectively. | |||||||||
At the time of product shipment, we estimate and accrue for the amount of standard warranty cost and record the amount as a cost of revenue. Determining the amount of warranty costs requires management to make estimates and judgments based on historical claims experience, industry benchmarks, test data and various other assumptions including estimated field failure rates that are believed to be reasonable under the circumstances. The amount of warranty costs accrued are net of warranty obligations to be fulfilled by our suppliers. The results of these judgments formed the basis for our estimate of the total charge to cover anticipated customer warranty, repair, return and replacement and other associated costs. Should actual product failure rates, claim levels, material usage or supplier warranties on parts used in our products differ from our original estimates, revisions to the estimated warranty liability could result in adjustments to our cost of revenue in future periods. | |||||||||
Certain of our standard product warranty obligations require us to reimburse a customer for installation and other related costs in the event that field reliability rates fall below contractually specified thresholds. We consider the probability that we will have to pay such incremental warranty costs based on the expected performance of a delivered product when we record new warranty obligations issued in a period as well as when we determine if any changes are required to our original estimates for pre-existing warranty obligations. | |||||||||
Our warranty obligations are affected by product failure rates, claims levels, material usage and supplier warranties on parts included in our products. Because our products are relatively new and we do not have the benefit of long-term experience observing the products’ performance in the field, it is possible that the estimates of a product’s lifespan and incidence of claims could vary from period to period. | |||||||||
In certain customer arrangements, we have provided extended warranties for periods of up to 15 years following the initial standard warranty period. We recognize revenue associated with extended warranties over the extended warranty period when the extended warranty period commences. Costs associated with providing extended warranties are expensed as incurred during the extended warranty period. As of June 30, 2014 and December 31, 2013, we had deferred revenue associated with extended warranty arrangements of $0.5 million and $0.2 million, respectively, included in other current liabilities, and $7.4 million and $7.1 million, respectively, included in other long-term liabilities on our condensed consolidated balance sheets. | |||||||||
Conversion of Convertible Promissory Notes and Embedded Derivatives | ' | ||||||||
Conversion of Convertible Promissory Notes and Embedded Derivatives | |||||||||
In connection with our IPO in March 2013, the conversion of the convertible notes and issuance of common stock were accounted for as debt extinguishments and accordingly, the convertible notes, unamortized debt issuance costs and bifurcated compound embedded derivatives were removed at their respective carrying amounts and the shares of common stock issued were measured at fair value based on the closing price on the date our IPO closed. As a result, we recorded a loss on debt extinguishments of $22.9 million in the three months ended March 31, 2013. | |||||||||
Accumulated Other Comprehensive Income (AOCI) | ' | ||||||||
Accumulated Other Comprehensive Income (AOCI) | |||||||||
The components of AOCI, net of tax, were as follows (in thousands): | |||||||||
Foreign Currency | Unrealized Gains | ||||||||
Translation | (Losses) on Available | ||||||||
Adjustment | for Sale Securities | Total | |||||||
Balance as of December 31, 2013 | $ | 46 | $ | 84 | $ | 130 | |||
Other comprehensive income (loss) before reclassification | -12 | 56 | 44 | ||||||
Amounts reclassified from AOCI | — | -111 | -111 | ||||||
Other comprehensive loss | -12 | -55 | -67 | ||||||
Balance as of June 30, 2014 | $ | 34 | $ | 29 | $ | 63 | |||
Other Long-Term Assets | ' | ||||||||
Other Long-Term Assets | |||||||||
Other long-term assets consisted of the following: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Acquired intangible assets, net | $ | 4,364 | $ | 224 | |||||
Goodwill | 5,131 | 447 | |||||||
Prepaid expenses, deposits, and receivables, non-current | 1,626 | 896 | |||||||
Other long-term assets | $ | 11,121 | $ | 1,567 | |||||
Recent Accounting Pronouncements | ' | ||||||||
Recent Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board issued guidance related to revenue from contracts with customers, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. Under this guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The updated standard will replace most existing revenue recognition guidance under GAAP when it becomes effective and permits the use of either the full retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard will be effective for us in the first quarter of 2017. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. | |||||||||
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Description of Business and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Components of Inventory | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Component parts | $ | 452 | $ | 690 | |||||
Finished goods | 4,115 | 3,660 | |||||||
Inventory | $ | 4,567 | $ | 4,350 | |||||
Schedule of Product Warranty Obligation as Presented in Condensed Consolidated Balance Sheets | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Current warranty obligation—classified in accrued liabilities | $ | 3,235 | $ | 2,985 | |||||
Non-current warranty obligation—classified in other liabilities | 3,446 | 3,104 | |||||||
$ | 6,681 | $ | 6,089 | ||||||
Schedule of Product Warranty Activity | ' | ||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Warranty obligation—beginning of period | $ | 6,089 | $ | 6,316 | |||||
Warranty expense for new warranties issued | 335 | 907 | |||||||
Utilization of warranty obligation | -1,470 | -1,110 | |||||||
Changes in estimates for pre-existing warranties | 1,727 | -118 | |||||||
Warranty obligation—end of period | $ | 6,681 | $ | 5,995 | |||||
Schedule of Accumulated Other Comprehensive Income Loss | ' | ||||||||
Foreign Currency | Unrealized Gains | ||||||||
Translation | (Losses) on Available | ||||||||
Adjustment | for Sale Securities | Total | |||||||
Balance as of December 31, 2013 | $ | 46 | $ | 84 | $ | 130 | |||
Other comprehensive income (loss) before reclassification | -12 | 56 | 44 | ||||||
Amounts reclassified from AOCI | — | -111 | -111 | ||||||
Other comprehensive loss | -12 | -55 | -67 | ||||||
Balance as of June 30, 2014 | $ | 34 | $ | 29 | $ | 63 | |||
Schedule of Other Long-Term Assets | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Acquired intangible assets, net | $ | 4,364 | $ | 224 | |||||
Goodwill | 5,131 | 447 | |||||||
Prepaid expenses, deposits, and receivables, non-current | 1,626 | 896 | |||||||
Other long-term assets | $ | 11,121 | $ | 1,567 | |||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Net Income (Loss) Per Share [Abstract] | ' | |||||||||||
Computation of Historical Basic and Diluted Net Loss Per Share | ' | |||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net income (loss) | $ | -24,591 | $ | 9,470 | $ | -52,398 | $ | -54,896 | ||||
Deemed dividend to convertible preferred stockholders | — | — | — | -105,000 | ||||||||
Net income (loss) available to common stockholders | $ | -24,591 | $ | 9,470 | $ | -52,398 | $ | -159,896 | ||||
Weighted average common shares outstanding—basic | 48,315 | 46,600 | 48,006 | 28,637 | ||||||||
Dilutive effect of employee equity incentive plans | — | 2,342 | — | — | ||||||||
Dilutive effect of warrants to purchase common stock | — | 55 | — | — | ||||||||
Weighted average common shares outstanding—diluted | 48,315 | 48,997 | 48,006 | 28,637 | ||||||||
Basic earnings (loss) per common share | $ | -0.51 | $ | 0.20 | $ | -1.09 | $ | -5.58 | ||||
Diluted earnings (loss) per common share | $ | -0.51 | $ | 0.19 | $ | -1.09 | $ | -5.58 | ||||
Common Shares Outstanding were Excluded from Computation of Diluted Net Loss Per Share | ' | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Employee equity incentive plans | 7,808 | 2,636 | 7,808 | 6,565 | ||||||||
Warrants to purchase common stock | — | 1 | — | 55 | ||||||||
Total common stock equivalents | 7,808 | 2,637 | 7,808 | 6,620 | ||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Cash, Cash Equivalents and Short-Term Investments | ' | |||||||||||
As of June 30, 2014 | ||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Current assets: | ||||||||||||
Cash | $ | 49,204 | $ | — | $ | — | $ | 49,204 | ||||
Cash equivalents: | ||||||||||||
Money market mutual funds | 15,582 | — | — | 15,582 | ||||||||
Total cash equivalents | 15,582 | — | — | 15,582 | ||||||||
Short-term fixed income securities: | ||||||||||||
U.S. government and agency obligations | 39,023 | 79 | -7 | 39,095 | ||||||||
U.S. and foreign corporate debt securities | 19,413 | 41 | -12 | 19,442 | ||||||||
Foreign governments and multi-national agency obligations | 2,001 | — | -3 | 1,998 | ||||||||
Total short-term investments | 60,437 | 120 | -22 | 60,535 | ||||||||
Total cash, cash equivalents and short-term investments | $ | 125,223 | $ | 120 | $ | -22 | $ | 125,321 | ||||
As of December 31, 2013 | ||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||
Cost | Gains | Losses | Fair Value | |||||||||
Current assets: | ||||||||||||
Cash | $ | 52,346 | $ | — | $ | — | $ | 52,346 | ||||
Cash equivalents: | ||||||||||||
Money market mutual funds | 30,250 | — | — | 30,250 | ||||||||
Total cash equivalents | 30,250 | — | — | 30,250 | ||||||||
Short-term fixed income securities: | ||||||||||||
U.S. government and agency obligations | 41,991 | 84 | -21 | 42,054 | ||||||||
U.S. and foreign corporate debt securities | 18,366 | 76 | -1 | 18,441 | ||||||||
Foreign governments and multi-national agency obligations | 2,764 | — | -3 | 2,761 | ||||||||
Total short-term investments | 63,121 | 160 | -25 | 63,256 | ||||||||
Total cash, cash equivalents and short-term investments | $ | 145,717 | $ | 160 | $ | -25 | $ | 145,852 | ||||
Contractual Maturities of Cash Equivalents and Short-Term Investments | ' | |||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||
Amortized | Aggregate | Amortized | Aggregate | |||||||||
Cost Basis | Fair Value | Cost Basis | Fair Value | |||||||||
Due within one year | $ | 32,882 | $ | 32,903 | $ | 44,477 | $ | 44,474 | ||||
Due after 1 year through 3 years | 43,135 | 43,214 | 48,894 | 49,032 | ||||||||
Total cash equivalents & short-term investments | $ | 76,017 | $ | 76,117 | $ | 93,371 | $ | 93,506 | ||||
Fair Value of Financial Assets Recorded on Recurring Basis | ' | |||||||||||
Fair Value Measurement Using | ||||||||||||
Quoted Prices in | ||||||||||||
Active Markets | Significant Other | Significant | ||||||||||
for Identical | Observable | Unobservable | ||||||||||
Instruments | Inputs | Inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||
Cash equivalents: | ||||||||||||
Money-market funds | $ | 15,582 | $ | — | $ | — | $ | 15,582 | ||||
Total cash equivalents | 15,582 | — | — | 15,582 | ||||||||
Short-term investments: | ||||||||||||
U.S. Government and agency obligations | — | 39,095 | — | 39,095 | ||||||||
U.S. and foreign corporate debt securities | — | 19,442 | — | 19,442 | ||||||||
Foreign governments and multi-national agency obligations | — | 1,998 | — | 1,998 | ||||||||
Total short-term investments | — | 60,535 | — | 60,535 | ||||||||
Total assets measured at fair value | $ | 15,582 | $ | 60,535 | $ | — | $ | 76,117 | ||||
As of December 31, 2013, the fair value of these financial assets recorded at fair value on a recurring basis was determined using the following inputs (in thousands): | ||||||||||||
Fair Value Measurement Using | ||||||||||||
Quoted Prices in | ||||||||||||
Active Markets | Significant Other | Significant | ||||||||||
for Identical | Observable | Unobservable | ||||||||||
Instruments | Inputs | Inputs | ||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||
Cash equivalents: | ||||||||||||
Money-market funds | $ | 30,250 | $ | — | $ | — | $ | 30,250 | ||||
Total cash equivalents | 30,250 | — | — | 30,250 | ||||||||
Short-term investments: | ||||||||||||
U.S. Government and agency obligations | — | 42,054 | — | 42,054 | ||||||||
U.S. and foreign corporate debt securities | — | 18,441 | — | 18,441 | ||||||||
Foreign governments and multi-national agency obligations | — | 2,761 | — | 2,761 | ||||||||
Total short-term investments | — | 63,256 | — | 63,256 | ||||||||
Total assets measured at fair value | $ | 30,250 | $ | 63,256 | $ | — | $ | 93,506 | ||||
Schedule of Gross Unrealized Losses and Fair Values of Investments | ' | |||||||||||
As of June 30, 2014 | As of December 31, 2013 | |||||||||||
Total (Less Than 12 Months) | Total (Less Than 12 Months) | |||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||
Value | Loss | Value | Loss | |||||||||
U.S. and foreign corporate debt securities | $ | 12,911 | $ | -12 | $ | 4,247 | $ | -1 | ||||
Foreign governments and multi-national agency obligations | 4,072 | -3 | 2,761 | -3 | ||||||||
U.S. government and agency obligations | 1,998 | -7 | 12,566 | -21 | ||||||||
Total | $ | 18,981 | $ | -22 | $ | 19,574 | $ | -25 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||||
Jun. 30, 2014 | ||||||
Commitments and Contingencies [Abstract] | ' | |||||
Future Minimum Commitments under Operating and Capital Leases | ' | |||||
30-Jun-14 | ||||||
Operating Leases | Capital Leases | |||||
2014 | $ | 2,658 | $ | 860 | ||
2015 | 5,408 | 1,162 | ||||
2016 | 4,198 | 112 | ||||
2017 | 455 | — | ||||
2018 | 466 | — | ||||
2019 and thereafter | 1,290 | — | ||||
Net minimum lease payments | $ | 14,475 | 2,134 | |||
Less amount representing interest | -107 | |||||
Present value of net minimum capital lease payments | $ | 2,027 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||
Stock-Based Compensation Expense | ' | |||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Cost of revenue | $ | 1,930 | $ | 2,531 | $ | 4,622 | $ | 9,255 | ||||
Research and development | 2,694 | 3,607 | 5,850 | 13,151 | ||||||||
Sales and marketing | 1,754 | 1,526 | 3,799 | 4,872 | ||||||||
General and administrative | 3,184 | 3,181 | 6,723 | 10,235 | ||||||||
Stock-based compensation expense | $ | 9,562 | $ | 10,845 | $ | 20,994 | $ | 37,513 | ||||
Summary of Stock Option Activity | ' | |||||||||||
Options Outstanding | ||||||||||||
Weighted | Weighted | |||||||||||
Average | Average | |||||||||||
Exercise | Remaining | Aggregate | ||||||||||
Number of | Price per | Contractual | Intrinsic | |||||||||
Shares | Share | Term (years) | Value | |||||||||
Balance at December 31, 2013 | 4,726 | $ | 11.88 | |||||||||
Options granted | 695 | 14.88 | ||||||||||
Options exercised | -166 | 3.93 | ||||||||||
Options cancelled or expired | -80 | 18.39 | ||||||||||
Balance at June 30, 2014 | 5,175 | $ | 12.44 | 6.20 | $ | 18,096 | ||||||
As of June 30, 2014: | ||||||||||||
Options vested and expected to vest | 5,069 | $ | 12.34 | 6.12 | $ | 18,090 | ||||||
Options exercisable | 3,577 | $ | 10.51 | 4.96 | $ | 18,064 | ||||||
Summary of Restricted Stock Unit Activity | ' | |||||||||||
Restricted Stock | ||||||||||||
Units Outstanding | ||||||||||||
Weighted | ||||||||||||
Average Grant | ||||||||||||
Number of | Date Fair Value | |||||||||||
Shares | per Share | |||||||||||
Balance at December 31, 2013 | 2,759 | $ | 19.14 | |||||||||
Restricted stock units granted | 785 | 13.42 | ||||||||||
Restricted stock units vested | -871 | 17.36 | ||||||||||
Restricted stock units cancelled | -158 | 18.46 | ||||||||||
Balance at June 30, 2014 | 2,515 | $ | 17.65 | |||||||||
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - (Narrative) (Detail) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Reverse stock split | ' | 5 | ' |
Finished goods | $4,115,000 | ' | $3,660,000 |
Extended product warranty period | '15 years | ' | ' |
Changes in estimates for pre-existing warranties | 1,727,000 | -118,000 | ' |
Loss on debt extinguishments | ' | 22,900,000 | ' |
Deferred Revenue [Member] | ' | ' | ' |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Extended warranty arrangements | 500,000 | ' | 200,000 |
Other Current Liabilities [Member] | Deferred Revenue [Member] | ' | ' | ' |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Extended warranty arrangements | 7,400,000 | ' | ' |
Other Noncurrent Liabilities [Member] | Deferred Revenue [Member] | ' | ' | ' |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Extended warranty arrangements | ' | ' | 7,100,000 |
Consigned inventory [Member] | ' | ' | ' |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Finished goods | $3,500,000 | ' | $2,800,000 |
Minimum [Member] | ' | ' | ' |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Standard warranty period | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Standard warranty period | '5 years | ' | ' |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies - (Components of Inventory) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Component parts | $452 | $690 |
Finished goods | 4,115 | 3,660 |
Inventory | $4,567 | $4,350 |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies - (Schedule of Product Warranty Obligation) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Warranty obligation | $6,681 | $6,089 | $5,995 | $6,316 |
Accrued liabilities [Member] | ' | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Warranty obligation | 3,235 | 2,985 | ' | ' |
Other liabilities [Member] | ' | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Warranty obligation | $3,446 | $3,104 | ' | ' |
Description_of_Business_and_Su6
Description of Business and Summary of Significant Accounting Policies - (Schedule of Product Warranty Activity) (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Commitments and Contingencies [Abstract] | ' | ' |
Warranty obligation-beginning of period | $6,089 | $6,316 |
Warranty expense for new warranties issued | 335 | 907 |
Utilization of warranty obligation | -1,470 | -1,110 |
Changes in estimates for pre-existing warranties | 1,727 | -118 |
Warranty obligation-end of period | $6,681 | $5,995 |
Description_of_Business_and_Su7
Description of Business and Summary of Significant Accounting Policies - (Schedule of Accumulated Other Comprehensive Income Loss) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance as of December 31, 2013 | ' | $130 | ' |
Other comprehensive income (loss) before reclassification | ' | 44 | ' |
Amounts reclassified from AOCI | ' | -111 | ' |
Other comprehensive income (loss) | 60 | -67 | 107 |
Balance as of March 31, 2014 | ' | 63 | ' |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance as of December 31, 2013 | ' | 46 | ' |
Other comprehensive income (loss) before reclassification | ' | -12 | ' |
Other comprehensive income (loss) | ' | -12 | ' |
Balance as of March 31, 2014 | ' | 34 | ' |
Unrealized Gains on Available for Sale Securities [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance as of December 31, 2013 | ' | 84 | ' |
Other comprehensive income (loss) before reclassification | ' | 56 | ' |
Amounts reclassified from AOCI | ' | -111 | ' |
Other comprehensive income (loss) | ' | -55 | ' |
Balance as of March 31, 2014 | ' | $29 | ' |
Description_of_Business_and_Su8
Description of Business and Summary of Significant Accounting Policies (Schedule of Other Long-Term Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Description of Business and Summary of Significant Accounting Policies [Abstract] | ' | ' |
Acquired intangible assets, net | $4,364 | $224 |
Goodwill | 5,131 | 447 |
Prepaid expenses, deposits, and receivables, non-current | 1,626 | 896 |
Other long-term assets | $11,121 | $1,567 |
Net_Income_Loss_Per_Share_Comp
Net Income (Loss) Per Share - (Computation of Basic and Diluted Net Loss Per Share) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Income (Loss) Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($24,591,000) | $9,470,000 | ($52,398,000) | ($54,896,000) |
Deemed dividend to convertible preferred shareholders | ' | ' | ' | -105,000,000 |
Net income (loss) attributable to common stockholders | -24,591,000 | 9,470,000 | -52,398,000 | -159,896,000 |
Weighted average common shares outstandingbbasic | 48,315 | 46,600 | 48,006 | 28,637 |
Dilutive effect of employee equity incentive plans | ' | 2,342 | ' | ' |
Dilutive effect of warrants to purchase common stock | ' | 55 | ' | ' |
Weighted average common shares outstandingbdiluted | 48,315 | 48,997 | 48,006 | 28,637 |
Basic earnings (loss) per common share | ($0.51) | $0.20 | ($1.09) | ($5.58) |
Diluted earnings (loss) per common share | ($0.51) | $0.19 | ($1.09) | ($5.58) |
Common stock dividend | ' | ' | ' | $105,000,000 |
Net_Income_Loss_Per_Share_Comm
Net Income (Loss) Per Share - (Common Shares Outstanding were Excluded from Computation of Diluted Net Loss Per Share) (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total common stock equivalents | 7,808 | 2,637 | 7,808 | 6,620 |
Employee equity incentive plans [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total common stock equivalents | 7,808 | 2,636 | 7,808 | 6,565 |
Warrants to purchase common stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Total common stock equivalents | ' | 1 | ' | 55 |
Financial_Instruments_Narrativ
Financial Instruments - (Narrative) (Detail) (USD $) | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Financial institution One [Member] | Financial institution One [Member] | Financial institution Two [Member] | Financial institution Two [Member] | Financial Institution Three [Member] | Financial Institution Three [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percentage of cash and cash equivalents held in financial institutions | ' | 43.00% | 41.00% | 40.00% | 34.00% | 12.00% | 21.00% |
Unrealized losses on investments | $0 | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Cash_Cas
Financial Instruments - (Cash, Cash Equivalents and Short-Term Investments) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | $125,223 | $145,717 |
Unrealized Gains | 120 | 160 |
Unrealized Losses | -22 | -25 |
Estimated Fair Value | 125,321 | 145,852 |
Cash [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 49,204 | 52,346 |
Estimated Fair Value | 49,204 | 52,346 |
Cash equivalents [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 15,582 | 30,250 |
Estimated Fair Value | 15,582 | 30,250 |
Cash equivalents [Member] | Money market mutual funds [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 15,582 | 30,250 |
Estimated Fair Value | 15,582 | 30,250 |
Short-term investments [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 60,437 | 63,121 |
Unrealized Gains | 120 | 160 |
Unrealized Losses | -22 | -25 |
Estimated Fair Value | 60,535 | 63,256 |
Short-term investments [Member] | U.S. Government and agency obligations [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 39,023 | 41,991 |
Unrealized Gains | 79 | 84 |
Unrealized Losses | -7 | -21 |
Estimated Fair Value | 39,095 | 42,054 |
Short-term investments [Member] | U.S. and foreign corporate debt securities [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 19,413 | 18,366 |
Unrealized Gains | 41 | 76 |
Unrealized Losses | -12 | -1 |
Estimated Fair Value | 19,442 | 18,441 |
Short-term investments [Member] | Foreign governments and multi-national agency obligations [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,001 | 2,764 |
Unrealized Losses | -3 | -3 |
Estimated Fair Value | $1,998 | $2,761 |
Financial_Instruments_Contract
Financial Instruments - (Contractual Maturities of Cash Equivalents and Short-Term Investments) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Due within one year, Amortized Cost Basis | $32,882 | $44,477 |
Due after 1 year through 3 years, Amortized Cost Basis | 43,135 | 48,894 |
Total cash equivalents & short-term investments, Amortized Cost Basis | 76,017 | 93,371 |
Due within one year, Aggregate Fair Value | 32,903 | 44,474 |
Due after 1 year through 3 years, Aggregate Fair Value | 43,214 | 49,032 |
Total cash equivalents & short-term investments, Aggregate Fair Value | $76,117 | $93,506 |
Financial_Instruments_Fair_Val
Financial Instruments - (Fair Value of Financial Assets Recorded on Recurring Basis) (Detail) (Fair value on a recurring basis [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | $76,117 | $93,506 |
Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 15,582 | 30,250 |
Cash equivalents [Member] | Money market mutual funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 15,582 | 30,250 |
Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 60,535 | 63,256 |
Short-term investments [Member] | U.S. Government and agency obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 39,095 | 42,054 |
Short-term investments [Member] | U.S. and foreign corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 19,442 | 18,441 |
Short-term investments [Member] | Foreign governments and multi-national agency obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 1,998 | 2,761 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 15,582 | 30,250 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 15,582 | 30,250 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Cash equivalents [Member] | Money market mutual funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 15,582 | 30,250 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 60,535 | 63,256 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 60,535 | 63,256 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | U.S. Government and agency obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 39,095 | 42,054 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | U.S. and foreign corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | 19,442 | 18,441 |
Significant Other Observable Inputs (Level 2) [Member] | Short-term investments [Member] | Foreign governments and multi-national agency obligations [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of financial assets | $1,998 | $2,761 |
Financial_Instruments_Schedule
Financial Instruments - (Schedule of Gross Unrealized Losses and Fair Values of Investments) (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value Total (Less Than 12 Months) | $18,981 | $19,574 |
Unrealized Loss Total (Less Than 12 Months) | -22 | -25 |
U.S. and foreign corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value Total (Less Than 12 Months) | 12,911 | 4,247 |
Unrealized Loss Total (Less Than 12 Months) | -12 | -1 |
Foreign governments and multi-national agency obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value Total (Less Than 12 Months) | 4,072 | 2,761 |
Unrealized Loss Total (Less Than 12 Months) | -3 | -3 |
U.S. Government and agency obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value Total (Less Than 12 Months) | 1,998 | 12,566 |
Unrealized Loss Total (Less Than 12 Months) | ($7) | ($21) |
Commitments_and_Contingencies_1
Commitments and Contingencies - (Narrative) (Detail) | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | Standby letters of credit [Member] | Standby letters of credit [Member] | Standby letters of credit [Member] | Standby letters of credit [Member] | Standby letters of credit [Member] | Standby letters of credit [Member] | |
plaintiff | USD ($) | USD ($) | Australian dollars [Member] | Australian dollars [Member] | Australian dollars [Member] | Australian dollars [Member] | |
claim | USD ($) | AUD | USD ($) | AUD | |||
Recorded Unconditional Purchase Obligation [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Credit facility with financial institution | $50 | $6 | $9.80 | $0.60 | 0.6 | $0.60 | 0.6 |
Unsecured surety bond | $15 | ' | ' | ' | ' | ' | ' |
Number of plaintiffs amended complaint | 2 | ' | ' | ' | ' | ' | ' |
Number of claims filed by plaintiffs | 2 | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - (Future Minimum Commitments Under Operating And Capital Leases) (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies [Abstract] | ' |
Operating leases, 2014 | $2,658 |
Operating leases, 2015 | 5,408 |
Operating leases, 2016 | 4,198 |
Operating leases, 2017 | 455 |
Operating leases, 2018 | 466 |
Operating leases, 2019 and thereafter | 1,290 |
Net minimum operating lease payments | 14,475 |
Capital leases, 2014 | 860 |
Capital leases, 2015 | 1,162 |
Capital leases, 2016 | 112 |
Net minimum capital lease payments | 2,134 |
Less amount representing interest | -107 |
Present value of net minimum capital lease payments | $2,027 |
StockBased_Compensation_Narrat
Stock-Based Compensation - (Narrative) (Detail) (USD $) | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 12, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
2012 Equity Incentive Plan [Member] | 2012 Equity Incentive Plan [Member] | ESPP [Member] | Expected compensation expense [Member] | Stock options [Member] | Restricted stock units [Member] | Minimum [Member] | Maximum [Member] | ||||
2012 Equity Incentive Plan [Member] | Restricted stock units [Member] | Restricted stock units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares reserved for issuance | 3,300,000 | ' | 2,500,000 | ' | 3,400,000 | 400,000 | ' | ' | ' | ' | ' |
Percent of voting power | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life in years | '5 years | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Vesting period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '4 years |
Incremental stock-based compensation expense | $0.60 | $4.10 | ' | ' | ' | ' | $0.70 | ' | ' | ' | ' |
Common stock shares purchased | ' | ' | ' | 1,752,895 | ' | ' | ' | ' | ' | ' | ' |
Common stock exercise price per share | ' | ' | ' | $34.90 | ' | ' | ' | ' | ' | ' | ' |
Maximum employees contribution | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' |
Purchase price of common stock | 'The purchase price of the stock is the lower of 85% of the fair market value on (a) the first day of the offering period or (b) the purchase date. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of the stock as a percent of price of common stock | 110.00% | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' |
Common stock price per share | ' | ' | ' | $17 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs | ' | ' | ' | ' | ' | ' | ' | $31.50 | $13.90 | ' | ' |
Weighted-average period of recognized stock-based compensation expenses | ' | ' | ' | ' | ' | ' | '9 months 18 days | '3 years 1 month 6 days | '2 years 1 month 6 days | ' | ' |
StockBased_Compensation_StockB
Stock-Based Compensation - (Stock-Based Compensation Expense) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $9,562 | $10,845 | $20,994 | $37,513 |
Cost of revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 1,930 | 2,531 | 4,622 | 9,255 |
Research and development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 2,694 | 3,607 | 5,850 | 13,151 |
Sales and marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 1,754 | 1,526 | 3,799 | 4,872 |
General and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $3,184 | $3,181 | $6,723 | $10,235 |
StockBased_Compensation_Summar
Stock-Based Compensation - (Summary of Stock Option Activity) (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Stock-Based Compensation [Abstract] | ' |
Beginning balance | 4,726 |
Number of Shares, Options granted | 695 |
Number of Shares, Options exercised | -166 |
Number of Shares, Options cancelled or expired | -80 |
Ending balance | 5,175 |
Number of Shares, Options vested and expected to vest | 5,069 |
Number of Shares, Options exercisable | 3,577 |
Weighted Average Exercise Price Per Share, Beginning balance | $11.88 |
Weighted Average Exercise Price Per Share, Options granted | $14.88 |
Weighted Average Exercise Price Per Share, Options exercised | $3.93 |
Weighted Average Exercise Price Per Share, Options cancelled or expired | $18.39 |
Weighted Average Exercise Price Per Share, Ending balance | $12.44 |
Weighted Average Exercise Price Per Share, Options vested and expected to vest | $12.34 |
Weighted Average Exercise Price Per Share, Options exercisable | $10.51 |
Weighted Average Remaining Contractual Term, Ending balance | '6 years 2 months 12 days |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | '6 years 1 month 13 days |
Weighted Average Remaining Contractual Term, Options exercisable | '4 years 11 months 16 days |
Aggregate Intrinsic Value, Ending balance | $18,096 |
Aggregate Intrinsic Value, Options vested and expected to vest | 18,090 |
Aggregate Intrinsic Value, Option exercisable | $18,064 |
StockBased_Compensation_Summar1
Stock-Based Compensation - (Summary of Restricted Stock Unit Activity) (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Stock-Based Compensation [Abstract] | ' |
Beginning balance, Number of Shares | 2,759 |
Restricted stock units granted, Number of Shares | 785 |
Restricted stock units vested, Number of Shares | -871 |
Restricted stock units cancelled, Number of Shares | -158 |
Ending balance, Number of Shares | 2,515 |
Beginning balance, Weighted Average Grant Date Fair Value per Share | $19.14 |
Restricted stock units granted, Weighted Average Grant Date Fair Value per Share | $13.42 |
Restricted stock units vested, Weighted Average Grant Date Fair Value per Share | $17.36 |
Restricted stock units cancelled, Weighted Average Grant Date Fair Value per Share | $18.46 |
Ending balance, Weighted Average Grant Date Fair Value per Share | $17.65 |
Income_Taxes_Detail
Income Taxes - (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Abstract] | ' | ' | ' | ' |
U.S. federal statutory tax rate | 0.00% | 3.30% | -1.20% | -0.70% |
Business_Acquisition_Narrative
Business Acquisition (Narrative) (Details) (USD $) | 1 Months Ended | ||||
23-May-14 | Jun. 30, 2014 | Dec. 31, 2013 | 23-May-14 | 6-May-14 | |
StreetLight Vision [Member] | StreetLight Vision [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Purchase agreements percent of shares acquired | ' | ' | ' | ' | 100.00% |
Business acquisition cash price | ' | ' | ' | ' | $8,800,000 |
Escrow deposit | ' | ' | ' | 2,600,000 | ' |
Escrow deposit threshold | ' | ' | ' | 1,300,000 | ' |
Escrow deposit threshold period | '12 months | ' | ' | ' | ' |
Escrow deposit conclusion period | '24 months | ' | ' | ' | ' |
Remaining payment | 1,300,000 | ' | ' | ' | ' |
Goodwill | ' | 5,131,000 | 447,000 | ' | 4,700,000 |
Identifiable intangible assets | ' | ' | ' | ' | 4,300,000 |
Net deferred tax assets (liabilities) | ' | ' | ' | ' | $500,000 |